A dollar will buy you a euro, for the first time in nearly 20 years. At one point today you could buy 10,000 euros for $9998.
I’m accustomed to thinking a euro will cost me perhaps $1.30 when I travel in Europe. What does this mean economically? Reuters comments:
The likes of sterling and the yen have also slid this year, partly because of more aggressive U.S. rate hikes have boosted the dollar's appeal and also as global recession fears have sent investors flocking to the safe-haven dollar.
Translation: The expectation of inflation in Europe is greater than in the U.S., and those with money would rather hold dollars. Interruptions of Russian oil and gas as a result of sanctions imposed because of Russia’s invasion of Ukraine are undoubtedly a factor.
Implication: European (or Canadian) travel could be a relative bargain this summer, get your Covid booster shot before going.
